Question

Requirement 2. Prepare an incomestament for Natural Bones for the younded December 31, 2018 For courts with a balance, make sure t o in the appropriate column) Natural Bones manufactures its own brand of pet chew bones. At the end of December 2018, the accounting records showed the following (Click the icon to view the accounting records) Read the requirements Income Statement Year Ended December 31, 2018 Requirements Net Sales Rever Cost of Goods Sold 1. Prepare a schedule of cost of goods manufactured for Natural Bones for the year ended December 31, 2018 2. Prepare an income statement for Natural Bones for the year ended December 31. 2018 3. How does the format of the income for Natural Bored from the income statement of a merchandiser? 4. Natural Bones manufactured 17.400 units of product in 2018. Compute the company's unit product cost for the wounded to the newest cert Cost of Goods Sold Gross Pott Selling and Administrative Expenses Print Done Requirement 1. Prepare a schedule of cost of goods manufactured for Natural Bones for the year ended December 31, 2018. (For accounts with a 50 balance, make sure to enter "o" in the appropriate column) Natural Bones Schedule of Cost of Goods Manufactured Data Table Year Ended December 31, 2018 Beginning Work in Process Inventory Direct Materials Used Balances: Beginning Ending Beginning Direct Materials 13.200 Direct Materials $ 13,200 $ 10,500 Purchases of Direct Materials 35,000 Work in Process Inventory 0 2,000 Direct Materials Available for Use 48.200 Finished Goods Inventory 0 5.500 Ending Direct Materials 10,500 Other information: Direct Materials Used 37,700 Direct materials purchases $ 35,000 17.000 Plantjanitorial services 900 Manufacturing Overhead: Sales salaries Plant Janitorial Services Delivery costs 1.900 Ulties for Plant Net sales revenue 112,000 Rent on Plant 15,000 Utilities for plant 1,600 Total Manufacturing Overhead 17.500 Renton plant 15,000 Customer service holine costs 1,100 Choose from any list or enter any number in the input fields and then continue to the next question Direct labor 17 000 Direct Labor 5.800 900 zwö @ Q Search Sear 22- O Q Q Ê Ò Q Search Cost of Goods Sold Gross Profit Selling and Administrative Expenses: Rent on Plant Total Manufacturing Overhead 17,500 Total Selling and Administrative Expenses Operating Income 72,200 Requirement 3. How does the format of the income statement for Natural Bones differ from the income statement of a merchandiser? Total Manufacturing Costs incurred during the Year Total Manufacturing Costs to Account For 72,200 2,000 Ending Work-in-Process Inventory A manufacturer's cost of goods sold is based on its In contrast, a merchandiser's cost of goods sold is based on its Requirement 4. Natural Bones manufactured 17,400 units of its product in 2018. Compute the company's unit product cost for the year, rounded to the nearest cent. Cost per unit = 70,200 Cost of Goods Manufactured

Answer 1

Part-1

Natural Bones
Cost Sheet
Description	Amount
Opening Stock - Raw Material	13,200.00
Add: Purchase - Raw Material	35,000.00
Add: Other Purchase Expenses - Raw Material	0
Add:	0
Add: Direct Labour/Wages	17,000.00
Add: Other Direct Expenses	0
Less: Closing Stock - Raw Material	10,500.00
PRIME COST (A)	54,700.00
Add:- Over Heads Expenses Factory
Rent - plant	15,000.00
Plant services	900.00
Plant utilities	1,600.00
WORKS COST INCURRED	72,200.00
Add: Opening Stock - Work in Progress	-
Less: Closing Stock - Work in Progress	2,000.00
WORKS COST (A+B)	70,200.00
Add:-Administration Over Heads:
Office Rent	-
COST OF PRODUCTION (B+C)	70,200.00
Add: Opening Stock - Finished Goods	-
Less: Closing Stock - Finished Goods	5,500.00
COST OF GOODS SOLD (C+D)	64,700.00
Add:- Selling and Distribution Overhead Expenses:-
Customer services	1,100.00
Salary - Sales	5,800.00
Delivery Expenses	1,900.00
COST OF SALES (D+E)	73,500.00
ADD: PROFIT	38,500.00
SALES	112,000.00

Part- B

Natural Bones
Year ending 31, Dec. 2018
Revenue		2018
Sales revenue	112,000
Other revenue	-
Total Revenues		112,000
Cost of good sold
Raw material used	37,700
Direct labour	17,000
Rent- Plant	15,000
Plant services	900
Plant utilities	1,600
Closing stock of W.I.P	(2,000)
Closing stock of Finished goods	(5,500)
Cost of good sold		64,700
Gross profit		47,300
Selling and Administrative cost
Sales salaries	5800
Delivery cost	1900
Customer services	1100
Total selling and admin cost		8,800
Operating Income		38,500

Part-c

Information is not given to solve the comparison in this part.

Part - D

Total no. of unit produced is given 17,400 for year 2018

so No. of finished goods plus No. of units sold is 17,400 as given.

Total cost of Production is $70,200

Cost per unit = 70200/17400 =4.03